Saturday, June 1, 2013

Division of labour versus specialisation of labour




     Division of labour
Division of labour is defined as the technique of breaking down a production process into a large number of separate and simple operations.
Specialisation of labour is defined as the way in which each worker employs in doing a particular task or occupation rather than being a ‘jack of all trades’.  It can be stated that division of labour leads to specialization of labour.

Advantages of division of labour
1-It enables the workers to choose a job according to their own interest and ability. Division of labour creates a large number of different jobs. Hence, make it easier for a worker to decide a task which suits his/her willingness and ability.

2-It saves time when the task is divided among many workers. As practice makes a person perfect, a specialized worker can easily learn and acquire the necessary knowledge and skills to carry out the task with greater speed and confidence.

3- It also saves tools as each worker concentrate on single task with few movements. If a worker concentrates on number of tasks, he/she needs to keep number of tools. For a large part of time most of the tools will be idle as a worker can work with one or few tools at a time. But, a specialized task requires only one set of tool.

4-It allows the use of machinery as workers are assigned with specialist tasks. When a complex production process is broken down into smaller operations, it is easier to device machines to carry out the simple operations. Division of labour assists the mechanization of production.

5-It increases the productivity as the workers can show their maximum performance. The several advantages of division of labour enhance the efficiency of workers and also increase the productivity of firms.


Disadvantages of division of labour
1-It creates boredom and frustration as a labourer repeats a single task constantly. The advantages such as higher wages and shorter working hours due to mass-production may not satisfy the specialized workers as monotony causes dissatisfaction. 

2-It leads for loss of skills as the use of machines replaces the labour and each worker focus on one single task. As machines are devised to carry out some simplified tasks of the complex production process, workers may lose those skills performed by machines. A person may own various skills and talents, but if he/she becomes specialized on a particular task, he/she may forget the other skills and talents. This also reduces the flexibility of workers.

3-It causes interdependence between workers as the outcome depends on the performance of all workers. The carelessness or inefficiency of one or few workers affect the performance of whole team and also absenteeism of workers may disrupt the whole process. Specialization makes us all dependent upon one another.

4-It is responsible for a lack of variety as products become standardised with division of labour. Division of labour requires a large market to carry out mass production. Hence, specialized firms concentrate on one or few products and produce enormous quantity of those identical products. This limits the varieties of goods available in the market. 

Definition of 'production' and 'productivity'

     



    Production
   In the general meaning, production is referred for making physical objects. But the economics meaning of the term is very broad. Any kind of work which satisfies people’s wants and for which they are ready to pay a price is a productive work, hence it is considered production.   
   In economics, production is defined as producing goods and services to satisfy consumer wants for that they are ready to pay price. Production includes the output of goods as well as services.



Productivity
    Productivity is defined as the measure of efficiency of production. It is an important calculation as comparison leads to competition and competition leads to efficiency. Productivity can be used to calculate and compare the efficiency of workers, firms, industries and countries. This is measured in terms of output per input. While calculating productivity, it is important to take into account the quantity and quality of inputs (factors of production) used and also the quantity and quality of outputs   (goods and services) produced. Otherwise the comparison may be considered unfair and unrealistic.  The following is the formula to calculate productivity.
    Here, output is the quantity of goods and services produced and input is the quantity of factors of production (land, labour and capital) used to produce the output.